The Fisher effect postulated that real interest rate is constant, and that nominal interest rate and expected inflation … interest rate and inflation rate while rejecting the notion of a full Fisher Effect. The dynamic relationship between nominal … interest rate and inflation rate is also examined from the error-correction models derived, and the analysis is extended to …

countries with low inflation, the raw relationship between average inflation and the growth rate of money is tenuous at best … elasticities implied by theories of Baumol-Tobin and Miller-Orr. Finally, the sample after 1990 shows considerably less inflation … variability, worsening the fit of a one-for-one relationship between money growth and inflation, and generates a fairly low …

We study the welfare costs of inflation in a monetary general equilibrium model with networks in the labor market …. Inflation affects the consumption-leisure choice differently depending on job network structure; inflation hits harder in more … connected networks. In these networks, people consume more and enjoy more leisure, leading to higher welfare. Inflation reduces …

Our paper studies the relationship between money growth and consumer price inflation in the euro area using wavelet … analysis. Wavelet analysis allows to account for variations in the money growth-inflation relationship both across the … frequency spectrum and across time. We find evidence of strong comovements between money growth and inflation at low frequencies …

inflation. This relationship is strong in economies with high inflation, but weakens under low inflation. Based on these … findings, we study the dependence of the money-prices relationship on the level of inflation in Argentina along the last 35 … and inflation. Proportionality holds for the high inflation period but weakens under low inflation. Money velocity is …

Conventional wisdom is that inflation makes people spend money faster, trying to get rid of it like a “hot potato,” and … this is a channel through which inflation affects velocity and welfare. Monetary theory with endoge- nous search intensity … seems ideal for studying this. However, in standard models, inflation is a tax that lowers the surplus from monetary …

The paper analyzes the short-run impact of periods of strong monetary growth on inflation dynamics for 15 …